Cultural Shift and Delivery Apps Fuel Skilled Labor Shortage, Putting Pressure on Brazil’s Construction Sector
- Brazil’s unemployment rate stands at 7%, but a technical skills gap limits growth and drives up construction costs
According to the Brazilian Institute of Geography and Statistics (IBGE), the country’s current unemployment rate is 7%, a figure considered high when compared to the global average of 5%, as reported by the International Labour Organization. Still, Brazil’s rate is lower than that of other Latin American countries like Argentina (7.9%) and Chile (8.8%).
Despite available job openings, companies are facing a shortage of qualified labor. A survey by FGV IBRE confirms this reality: 60.4% of construction companies report difficulties in finding skilled workers.
For Hailton Liberatore, Managing Partner at Libercon Engenharia, the most significant shift came in the post-pandemic period, with the trend intensifying over the past two years. He highlights that the biggest gaps are among “direct” labor—carpenters, bricklayers, and joiners.
“This isn’t a temporary problem; it’s structural. The market will need to adapt with new technologies, training programs, and other initiatives to overcome this,” he explains.
Construction vs. Delivery Apps
One of Liberatore’s key observations is that the issue is deeply cultural. Younger generations are showing less interest in working in the construction sector.
“The sons of bricklayers or carpenters no longer want to follow in their parents’ footsteps. It’s not just a shift toward other sectors—it’s cultural. [...] We’ve lost this labor force to Uber, logistics, delivery services, motorbike couriers, and so on,” says the executive.
This perspective aligns with FGV IBRE data, which shows that 54% of delivery drivers and 58% of app-based drivers rely on these jobs as their sole source of income. Only 11% of delivery drivers and 18% of app drivers are actively seeking permanent employment to replace their gig work.
Impact on Costs and Deadlines
The labor shortage is directly impacting Brazil’s National Construction Cost Index (INCC-M), which posted a 12-month increase of 7.17%.
“This problem is already causing real issues like rising labor costs and missed deadlines. The market is struggling to meet timelines—not just in logistics projects, but in residential, commercial, and construction as a whole,” says Liberatore.
Solutions
According to FGV data, companies are being forced to invest in solutions. Among those struggling with labor shortages, 43.1% say they are investing in internal training programs to attract and retain talent. Additionally, 28.1% are offering more benefits, while 27.1% are reallocating existing employees. Only 18.1% are addressing the issue through wage increases.
“We created a crisis committee made up of multidisciplinary professionals and launched employee referral programs with incentive rewards. We’ve partnered with unions, vocational schools, employment agencies, and the Public Employment Service (CAT). We’ve also started building our own in-house teams. Even with better benefits and higher salaries, hiring remains a challenge. Creativity is essential,” says the Managing Partner of Libercon Engenharia.
